https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3AReceivableDefinition:Receivable - Revision history2026-06-13T15:39:08ZRevision history for this page on the wikiMediaWiki 1.43.8https://www.insurerbrain.com/w/index.php?title=Definition:Receivable&diff=8136&oldid=prevPlumBot: Bot: Creating new article from JSON2026-03-10T13:45:07Z<p>Bot: Creating new article from JSON</p>
<p><b>New page</b></p><div>📊 '''Receivable''' in the insurance context refers to a monetary amount owed to an [[Definition:Insurance carrier | insurer]], [[Definition:Reinsurer | reinsurer]], or intermediary that has been recognized on the balance sheet but not yet collected. The most common forms include [[Definition:Premium receivable | premiums receivable]] from [[Definition:Policyholder | policyholders]] or [[Definition:Insurance agent | agents]], [[Definition:Reinsurance recoverable | reinsurance recoverables]] owed by [[Definition:Reinsurer | reinsurers]] on paid [[Definition:Claim | claims]], and amounts due from [[Definition:Managing general agent (MGA) | MGAs]] or [[Definition:Broker | brokers]] under [[Definition:Binding authority agreement | binding authority agreements]]. Unlike many industries where receivables represent simple trade credit, insurance receivables carry unique regulatory and accounting treatment because of the sector's reliance on [[Definition:Statutory accounting | statutory accounting principles]].<br />
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🔄 An insurer records a receivable when a [[Definition:Policy | policy]] is bound and the [[Definition:Premium | premium]] is earned or when a [[Definition:Reinsurance | reinsurance]] contract obligates a counterparty to reimburse [[Definition:Loss | losses]]. Collection timelines vary widely: direct-billed personal lines premiums may be due monthly, while [[Definition:Surplus lines | surplus lines]] premiums routed through wholesale [[Definition:Broker | brokers]] can take considerably longer to settle. Aging receivables attract attention from both internal finance teams and [[Definition:Regulator | regulators]] because uncollected balances inflate reported [[Definition:Asset | assets]] and may mask [[Definition:Solvency | solvency]] concerns. Companies typically establish [[Definition:Allowance for doubtful accounts | allowances for doubtful accounts]] and write off balances that exceed prescribed aging thresholds.<br />
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📌 Sound receivable management is foundational to an insurer's [[Definition:Cash flow | cash flow]] and financial health. Persistent collection delays — whether from [[Definition:Policyholder | policyholders]], distribution partners, or reinsurers — can erode [[Definition:Liquidity | liquidity]] and trigger [[Definition:Regulatory action level | regulatory action]]. State insurance departments monitor the ratio of receivables to [[Definition:Admitted asset | admitted assets]] as part of their [[Definition:Financial examination | financial examination]] process, and excessive concentrations in a single counterparty can prompt supervisory concern. Modern [[Definition:Insurtech | insurtech]] platforms have improved the picture by enabling real-time premium collection and automated [[Definition:Reconciliation | reconciliation]], reducing the lag between policy issuance and cash receipt.<br />
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'''Related concepts'''<br />
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* [[Definition:Premium receivable]]<br />
* [[Definition:Reinsurance recoverable]]<br />
* [[Definition:Reconciliation]]<br />
* [[Definition:Statutory accounting]]<br />
* [[Definition:Admitted asset]]<br />
* [[Definition:Cash flow]]<br />
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